Magnite Sees CTV Surge and Google Antitrust Remedies as Growth Catalysts

Magnite NASDAQ: MGNI said growth in connected television advertising, expansion of its programmatic technology and potential changes to Google’s advertising technology practices are central themes for its business outlook. Speaking at an Age of AI technology conference, Senior Vice President of Investor Relations Nick Kormeluk discussed the company’s view of the Google ad-tech antitrust case, Magnite’s second-quarter connected TV performance, its SpringServe platform and its approach to capital allocation.

Antitrust Remedies Could Reshape Open-Web Advertising

Kormeluk said the Google ad-tech trial overseen by Judge Leonie Brinkema focused on Google’s advantages in ad serving and advertising exchanges following its DoubleClick acquisition. He said Google’s ad server has held a dominant position in non-connected-TV open-internet advertising and that Google’s exchange benefited from preferred timing, auction information and bidding capabilities. According to Kormeluk, Magnite estimates that Google has roughly 60% share of the relevant market, while Magnite has about 6% to 8% of the total market and approximately 15% of the non-Google SSP market. He said any impact from remedies would affect Magnite’s DV+ business, which includes desktop and mobile web advertising, rather than its CTV operations.

Kormeluk said Magnite has not incorporated potential benefits from antitrust remedies into its forecasts, guidance or discussions with analysts. He argued that behavioral remedies could be implemented more quickly than structural remedies, which could face appeals and potential stays. He pointed to Prebid, an open-source software standard used by publishers, as a possible mechanism for providing advertising exchanges with simultaneous access to impressions and comparable auction data. Kormeluk said this approach could create a more level competitive environment.

“We have not seen anything change from the behaviors or the patterns” of Google’s conduct, Kormeluk said. He cited Magnite’s observations of auction outcomes following Google’s announced removal of “Last Look,” a feature that he said had enabled Google to win certain impressions after other bids were submitted. While acknowledging that traditional web page views in desktop and mobile are declining, Kormeluk said the open web remains a sizable advertising market. He also highlighted mobile apps and commerce media as healthier parts of Magnite’s DV+ business.

CTV Growth Driven by Programmatic Adoption

Magnite reported that CTV contribution ex-TAC, or traffic acquisition costs, increased 36% year over year in the second quarter and represented 51% of the company’s mix. Kormeluk said the company is b...